16.7 million sq. ft. of occupancy gains during 2018 offset 17.6 million sq. ft. of deliveries, a record-breaking amount of new product for the PA I-78/I-81 Corridor.
2018 saw more 1-million-square-foot warehouses deliver compared to any other year. At present, there appears to be enough future demand to continue that trend.
In spite of rising interest rates and shrinking yields, the investor interest in the Corridor drove the most robust year of sales activity second only to 2015 when more than $2 billion in sales occurred.
While average asking rents pushed nearer to $5.00, portions of the market such as the Lehigh Valley saw leases signed during 2018 that topped the $6.00 mark.
Growth in ecommerce sales will continue to translate into growing demand along the PA I-78/I-81 Corridor.